**3. Data and methodology**

#### **3.1 Research objective and data type**

The object in this study is Islamic banking in Indonesia. Its risks are analyzed by time series data published by Bank Indonesia and the Financial Services Authority Indonesia. The data spanned from January 2010 to August 2018 due to the new phase of the new normal of global economy where the global economy starts to increase after the global financial crises indicated by the growth of East Asian

country and China economy, including in Indonesia. The new normal refers to the business cycle (expansion, peak, recession, trough, and recovery phase).
